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JUE Insight: The labor market effects of place-based policies: Evidence from England’s Neighbourhood Renewal Fund

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  • Calvert Jump, Robert
  • Scavette, Adam

Abstract

Neighbourhood renewal programs are a type of place-based policy that aim to revive underperforming localities. The literature on place-based policies has found mixed results regarding their effects on local labor market outcomes, but there are relatively few studies of policies that aim to improve local labor supply. In this paper we examine the labor market effects of the Neighbourhood Renewal Fund, which targeted 88 of the most deprived areas in England during the early 2000s as part of the Labour government’s National Strategy for Neighbourhood Renewal. The fund disbursed almost £3 billion for spending on community safety, education, healthcare and worklessness, with supply-side interventions making up the bulk of the program’s spending on worklessness. Using a difference-in-differences approach, we find statistically significant impacts on local employment. Our results suggest that policy interventions to improve local labor supply can be a successful strategy for neighborhood renewal.

Suggested Citation

  • Calvert Jump, Robert & Scavette, Adam, 2024. "JUE Insight: The labor market effects of place-based policies: Evidence from England’s Neighbourhood Renewal Fund," Journal of Urban Economics, Elsevier, vol. 144(C).
    • Handle: RePEc:eee:juecon:v:144:y:2024:i:c:s0094119024000603
    DOI: 10.1016/j.jue.2024.103690
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    Keywords

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    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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